First, the price trend:

According to data from the business community, the price of ortho-benzene increased sharply this week. At the end of this week, the price of o-xylene on the 10th of August was 7562.50 yuan / ton, compared with the price of o-xylene (OX) on the previous trading day on August 3, the price of 7062.50 yuan / ton rose 500 yuan / ton, an increase of 7.08%, an increase of 26.99% .

Second, the market analysis:

Product:

This week, the inventory of phthalene in the East China Port remained at a low level. As of August 10, the inventory of Huadong Port was about 30,000 tons. The price of ortho-benzene outside the plate continued to rise. On August 9, the market for the o-xylene market in Europe was quoted at US$970.00/ton FOB Amsterdam, Rotterdam and Antwerp. On August 3, the price of phthalate external disk in China rose by US$52/ton. The price of phthalate external disk rose sharply, the cost of imported ortho-benzene increased, the price of imported ortho-benzene increased, and the price of benzene in the port area increased significantly. The price of benzene in the port soared, prompting the domestic price of o-xylene to rise, and the growth of benzene was full.

Policies and regulations:

The Customs Tariff Commission of the State Council issued an announcement on August 3rd to impose tariffs of 25%, 20%, 10%, and 5% on 5,207 tax items originating in the United States. Among the goods subject to tariffs, o-xylene will be subject to a 25% tariff. In 2017, China imported 356,000 tons of o-xylene. The dependence on imports of benzene was heavily dependent on imports. The increase in US import tariffs is bound to intensify the upward trend of domestic benzene. However, since China imports limited benzene from the United States and can find alternatives, the promotion of benzene growth is generally not affected.

Industry chain:

Mixed xylene prices rose last week, and the cost of o-xylene increased. On August 9th, the price of mixed xylene was 6,661.82 yuan/ton, which was priced at 6,539.23 yuan/ton from last weekend (August 3). The price rose by 1.87%. The price of mixed xylenes has risen, and the cost of o-xylene has risen, which has contributed to the rise in the market for ortho-benzene.

Third, the market outlook:

Baijiaxin, an analyst with the o-xylene data of the business community, believes that the price of the phthalate external disk has risen sharply, the price of the neighboring benzene in the port has risen, and the low benzene stock in the port has promoted the rise of the domestic benzene market. The price of mixed xylene in domestic benzene raw materials has risen, and the cost of o-benzene is still high, which is good for the benzene market. The port’s benzene stocks are at a low level, and the market’s soaring voice is highlighted. Moreover, the Sino-US trade war has intensified. China has imposed a 25% tariff on its neighboring benzene imported from the United States, further increasing the cost of importing ortho-benzene. The price of phthalonitrile external disk is unlikely to decline in the short term, and the strong neighboring benzene factor is strong. O-benzene is highly motivated, and it is expected that the rise in phthalate in the market may increase.